The Effect of Subscription Strategies, Personalized Offers, and Email Marketing on Perceived Usefulness through User Engagement and Its Impact on Conversion and Customer Retention in Local Indonesian Streaming Services

Authors

  • Frans Sudirjo Jurusan Manajemen, Fakultas Ekonomika dan Bisnis, Universitas 17 Agustus 1945 Semarang
  • Yana Priyana STAI Al-Andina
  • Tera Lesmana Ciputra University

DOI:

https://doi.org/10.58812/wsis.v3i08.2162

Keywords:

Subscription Strategies, Personalized Offers, Email Marketing, User Engagement, Customer Retention

Abstract

This study examines the influence of subscription strategies, personalized offers, and email marketing on perceived usefulness through user engagement, and their impact on conversion and customer retention in Indonesian local streaming services. Using a quantitative approach, data were collected from 300 respondents through a structured questionnaire using a 5-point Likert scale and analyzed with Structural Equation Modeling–Partial Least Squares (SEM-PLS 3). The results indicate that all three marketing strategies significantly enhance user engagement, with personalized offers having the strongest effect. User engagement strongly predicts perceived usefulness, which in turn significantly drives both conversion and customer retention. These findings confirm the mediating role of user engagement and perceived usefulness in the relationship between marketing strategies and business performance outcomes. The study contributes to the theoretical understanding of user behavior in digital entertainment services and provides practical recommendations for optimizing customer acquisition and loyalty in competitive streaming markets.

References

[1] E. S. D. Tumiwa and A. Furinto, “Developing Strategy to Enhance User Retention and Product Preference in Indonesia OTT Industry (Case Study of Vidio. com),” Int. J. Curr. Sci. Res. Rev., vol. 5, no. 04, pp. 1363–1371, 2022.

[2] H. B. Winarko and D. Susilo, “Media consumption behaviours and health impacts of video-on-demand services in Indonesia,” J. Stud. Komun., vol. 8, no. 3, pp. 521–532, 2024.

[3] A. Rahmawati, S. N. Febriyanti, R. P. Tutiasri, P. Febriana, and S. Sumardjijati, “Transmediation of Local Production in the Global Entertainment,” Int. J. Soc. Sci. Res. Rev., vol. 5, no. 10, pp. 481–488, 2022.

[4] R. R. Putra and Z. Hidayat, “Komunikasi pemasaran layanan video streaming dan on demand MNC Group (Studi Kasus: Aplikasi RCTI+),” J. Ilmu Sos. Dan Pendidik., vol. 6, no. 1, pp. 2598–9944, 2022.

[5] C. W. J. Lindström, B. Maleki Vishkaei, and P. De Giovanni, “Subscription-based business models in the context of tech firms: theory and applications,” Int. J. Ind. Eng. Oper. Manag., vol. 6, no. 3, pp. 256–274, 2024.

[6] A. Ulbinaitė and M. Belevičiūtė, “User value creation determinants in the subscription video-on-demand business model: a literature overview,” 2024.

[7] J. Kang, C. Su, J. Lan, and L. Chen, “Effects of the subscription-based partitioned pricing strategy of digital content platforms on user willingness to purchase,” J. Theor. Appl. Electron. Commer. Res., vol. 19, no. 4, pp. 3305–3330, 2024.

[8] D. Lim, Y. Ro, S. Lee, and J. Jahng, “Continuance Usage Intention on Subscription-based Streaming Service: Focusing on the Dedication-Constraint Model,” 경영학연구, vol. 51, no. 6, pp. 1595–1618, 2022.

[9] U. Singh, S. Singh, T. Rathee, and M. Vaish, “Customer Retention Modeling over the OTT Platform using Machine Learning,” Indian J. Sci. Technol., vol. 17, no. 42, pp. 4365–4371, 2024.

[10] W. Wang and S. Wu, “Analyzing User Psychology and Behavior in Short-Form Video Shopping Platforms: An Integrated TAM and ISS Model Approach,” SAGE Open, vol. 14, no. 4, p. 21582440241287076, 2024.

[11] H. Cai, “Examining social e-commerce platforms by mediating the effect of perceived usefulness and perceived trust using the technology acceptance model,” J. Organ. End User Comput., vol. 34, no. 8, pp. 1–20, 2022.

[12] R. Naidoo and A. Leonard, “Perceived usefulness, service quality and loyalty incentives: Effects on electronic service continuance,” South African J. Bus. Manag., vol. 38, no. 3, pp. 39–48, 2007.

[13] A. M. Mahendra, I. G. Anugrah, and W. P. P. Witra, “Analisis Penerimaan Pengguna pada Platform Game Digital Menggunakan Metode TAM (Technology Acceptance Model),” J. Nas. Komputasi dan Teknol. Inf., vol. 7, no. 6, 2024.

[14] M. N. Wambaire, “Determinants of Social Network Site Preferences for Accessing Reproductive Health Information among Students in Public Universities in Nairobi, Kenya.” JKUAT-COHRED, 2019.

[15] K. Anjaria and A. Patel, “A STUDY ON THE IMPACT OF SUBSCRIPTION-BASED MODELS ON CONSUMER BUYING BEHAVIOUR WITH RESPECT TO E-COMMERCE PLATFORMS,” Int. J. Manag. Public Policy Res., vol. 4, no. 1, pp. 1–7, 2025.

[16] A. Urgellés-Molina, “Narrative Memory and Engagement Strategies in Streaming Platforms,” in Media Engagement, Routledge, 2025, pp. 83–94.

[17] M. A. Barje, M. S. Bhuvad, M. A. Sheth, and R. Khed, “Personalization at Scale: Using Big Data for E-Commerce and Customer Experience Optimization,” Aims Scope Res. Vishwa, p. 6.

[18] A. G. Mohapatra, A. Mohanty, S. K. Mohanty, N. P. Mahalik, and S. Nayak, “Personalization and customer experience in the era of data‐driven marketing,” Artif. Intell. Businesses How to Dev. Strateg. Innov., pp. 467–511, 2025.

[19] S. Kaperonis, “AI-Powered Personalization: Boosting User Engagement and Customer Experience,” in AI Impacts on Branded Entertainment and Advertising, IGI Global Scientific Publishing, 2025, pp. 253–278.

[20] D. Patil, “Email marketing with artificial intelligence: Enhancing personalization, engagement, and customer retention,” Engag. Cust. Retent. (December 01, 2024), 2024.

[21] J. Strauss and R. Frost, E-marketing. Prentice hall press, 2011.

[22] F. J. Mulhern, “Direct and Interactive Marketing,” Wiley Int. Encycl. Mark., 2010.

[23] J. Dysart, “Email marketing grows up: a primer for the new millennium,” NetWorker, vol. 3, no. 4, pp. 40–41, 1999.

[24] P. Carmen and P. Al Nicolae, “Email marketing campaigns: the easiest path from organizations to consumers–an exploratory assessment,” Ann. Fac. Econ., vol. 1, no. 1, pp. 737–742, 2010.

[25] S. Chan-Olmsted, L.-C. Wolter, and R. Wang, “Toward a multidimensional framework of media engagement: Conceptualizing consumer experience and connection with media content in a digital environment,” in Emma conf 2017. European Media Management Associafion. https://www. media-management. eu/ocs/index. php/emma/emma2017/paper/view, 2017.

[26] M. Lalmas, H. O’Brien, and E. Yom-Tov, Measuring user engagement. Springer Nature, 2022.

[27] Z. Deng, L. Zhang, and J. Zhang, “Applying technology acceptance model to explore the determinants of mobile health service: from the perspective of public user,” 2012.

[28] F. Jingga, Z. H. Fitria, J. Alfi, and A. D. Kusumaiati, “Factors influenced user in Using Streaming Music Applications Using the TAM Method: Technology Acceptance Model,” in 2023 4th International Conference on Innovative Trends in Information Technology (ICITIIT), IEEE, 2023, pp. 1–6.

[29] A. K. Bansah and D. Darko Agyei, “Perceived convenience, usefulness, effectiveness and user acceptance of information technology: evaluating students’ experiences of a Learning Management System,” Technol. Pedagog. Educ., vol. 31, no. 4, pp. 431–449, 2022.

[30] W. A. Harmawan, S. H. Situmorang, and E. S. Rini, “The fairness of price and satisfaction on loyalty of digital streaming services users,” J. Ekon. Bisnis, Manaj. dan Akunt., vol. 2, no. 2, pp. 43–49, 2023.

[31] A. N. Marela and L. Alfansi, “Understanding Gen Z’s Netflix usage in Indonesia: an Extended TAM perspective on willingness to subscribe,” Manaj. dan Bisnis, vol. 23, no. 1, pp. 13–32, 2024.

[32] A. G. Pamungkas, G. Suparna, P. Y. Setiawan, and I. G. A. K. G. Suasana, “NETFLIX AND TELKOMSEL BUNDLING: DOES SYMBOLIC VALUE MATTER IN CO-BRANDING,” Distrib. Manag. Bus., vol. 12, no. 2, pp. 195–214, 2024.

[33] T. Chen, X. Guo, F. Yang, and L. Tian, “Strategic price bundling for online retail platforms considering consumer behavior of valuation discount,” J. Oper. Res. Soc., vol. 74, no. 12, pp. 2648–2664, 2023.

[34] X. Liu, B. Zhou, W. Qi, and J. Wang, “Service pricing and charging strategy for video platforms considering consumer preferences,” Int. Trans. Oper. Res., 2024.

[35] D. N. Dwivedi and G. Mahanty, “Leveraging Personalized AI Recommendations to Enhance User Experience in Streaming Services (OTT Platform): An Empirical Evaluation of Recommendations,” in Transforming Cinema with Artificial Intelligence, IGI Global Scientific Publishing, 2025, pp. 265–290.

[36] E. T. Endarwati, Y. Indriany, R. Rusdianto, N. N. Suarniki, and L. Pratiwi, “The Effect of Product Personalization, User Experience, and Consumer Trust on the Level of E-Commerce Consumer Satisfaction in Indonesia,” J. Bisnisman Ris. Bisnis dan Manaj., vol. 6, no. 1, pp. 163–179, 2024.

[37] H. Muminov, “PERSONALIZATION IN EMAIL MARKETING HOW TO INCREASE OPEN RATES AND ENGAGEMENT,” J. Artif. Intell. Digit. Econ., vol. 1, no. 8, pp. 36–41, 2024.

[38] I. Sayeed, “Email marketing–Role in improving customer retention rates,” EPRA Int. J. Econ. Bus. Manag. Stud., vol. 10, no. 2, pp. 95–99, 2023.

[39] I. P. S. Sanjaya, “Pengaruh Rasa Manfaat Dan Kemudahan Terhadap Minat Berperilaku (Behavioral Intention) Para Mahasiswa Dan Mahasiswi Dalam Penggunaan Internet,” Kinerja, vol. 9, no. 2, pp. 113–122, 2005.

[40] R. I. Mohd Amir, I. H. Mohd, S. Saad, S. A. Abu Seman, and T. B. H. Tuan Besar, “Perceived ease of use, perceived usefulness, and behavioral intention: the acceptance of crowdsourcing platform by using technology acceptance model (TAM),” in Charting a Sustainable Future of ASEAN in Business and Social Sciences: Proceedings of the 3rd International Conference on the Future of ASEAN (ICoFA) 2019—Volume 1, Springer, 2020, pp. 403–410.

[41] U. Cebeci, O. Ince, and H. Turkcan, “Understanding the intention to use Netflix: An extended technology acceptance model approach,” Int. Rev. Manag. Mark., vol. 9, no. 6, pp. 152–157, 2019.

[42] C.-P. H. Ernst, J. Pfeiffer, and F. Rothlauf, “Hedonic and utilitarian motivations of social network site adoption,” Johannes Gutenb. Univ. Mainz Work. Pap. Inf. Syst. Bus. Adm., pp. 1–14, 2013.

[43] T. Wu, N. Jiang, T. B. J. Kumar, and M. Chen, “The role of cognitive factors in consumers’ perceived value and subscription intention of video streaming platforms: a systematic literature review,” Cogent Bus. Manag., vol. 11, no. 1, p. 2329247, 2024.

[44] C. Lim, “Relationship between corporate social responsibility and corporate financial performance.” Walden University, 2017.

Downloads

Published

2025-08-29

How to Cite

The Effect of Subscription Strategies, Personalized Offers, and Email Marketing on Perceived Usefulness through User Engagement and Its Impact on Conversion and Customer Retention in Local Indonesian Streaming Services (F. Sudirjo, Y. . Priyana, & T. . Lesmana , Trans.). (2025). West Science Interdisciplinary Studies, 3(08), 1371-1383. https://doi.org/10.58812/wsis.v3i08.2162